September 16, 2010
- The decision to bring the Boeing 737-800 into the Southwest Airlines
fleet moved one step closer on Wednesday as the Executive Board of the
Transport Workers Union (TWU) Local 556, representing more than 9,700
Southwest Flight Attendants unanimously approved a tentative agreement
reached with the Company. The tentative agreement will now be presented
to members of TWU Local 556 for a ratification vote.

"Southwest has
been evaluating the opportunity to introduce the Boeing 737-800 into our
fleet as part of our domestic network, and an important step in our due
diligence was to discuss contract reopener provisions for a new aircraft
with our Flight Attendant and Pilot unions," said Mike Van de Ven,
Southwest Airlines Executive Vice President and Chief Operating Officer.

"The TWU
negotiating committee quickly grasped the potential benefits along with
the added operational complexities associated with adding the -800 to
our fleet. The fact that we can have these discussions over the course
of a couple of meetings and quickly find a common ground that is a win
for our Company and our Flight Attendants is a testament to the
collaboration and long-term vision of the Flight Attendants' Union
Leadership."

If the Company
pursues the -800, a joint committee would meet to work on the logistical
details related to scheduling and bidding procedures that adding a
fourth Flight Attendant will require.

If approved by a majority vote of the Flight Attendants,
their current contract also will be extended by one year, becoming
amendable May 31, 2013, and also include the potential for wage rate
increases based on the Company's financial performance.

"The decision to
add the -800 still isn't final; we are still in discussion with our
Pilots Union, SWAPA, and are continuing to evaluate network and
configuration options. As such, any details regarding firm orders with
Boeing, timing, and quantity of deliveries are still to be determined".

Southwest Airlines
is an American low-cost airline. The airline has its headquarters on the
grounds of Dallas Love Field in Dallas, Texas.
Southwest is the largest airline in the world by number of passengers
carried per year (as of 2009). Southwest maintains the third-largest
passenger fleet of aircraft among all of the world's commercial
airlines. As of May 3, 2009, Southwest operates approximately 3,510
flights daily.

Southwest Airlines has carried more passengers than any other U.S.
airline since August 2006 for combined domestic and international
passengers according to the U.S. Department of Transportation's Bureau
of Transportation Statistics. Southwest Airlines is one of the world?s
most profitable airlines, posting a profit for the 37th consecutive year
in January 2010.

The Boeing 737-800
is a stretched version of the 737-700, and replaces the 737-400. It also
filled the gap left by the decision to discontinue the McDonnell Douglas
MD-80 and MD-90 following Boeing's merger with McDonnell Douglas. The
-800 was launched by Hapag-Lloyd Flug (now TUIfly) in 1994 and entered
service in 1998. The 737-800 seats 162 passengers in a two class layout,
or 189 in one class, and competes with the A320. For many airlines in
the U.S.,
the 737-800 replaced aging Boeing 727-200 trijets.

The 737-800 is
also among the models replacing the McDonnell Douglas MD-80 and MD-90
series aircraft in airline service; it burns 850 gallons of jet fuel per
hour, or about 80% of the fuel needed by an MD-80 on a comparable
flight, even while carrying more passengers than the latter.

According to the
Airline Monitor, an industry publication, a 737-800 burns 4.88 gallons
of fuel per seat per hour. Alaska Airlines replaced the MD-80 with the
737-800, saving $2,000 per flight, assuming jet fuel prices of $4 per
gallon. The fuel cost of each such flight (2008 prices) on a 737-800 is
about $8,500.00. For example, on 14 August 2008, American Airlines
announced 26 orders for the 737-800 (20 are exercised options from
previously signed contracts and six are new incremental orders) as well
as accelerated deliveries.